As Myanmar braces for an economic resurgence following decades of
international isolation and military rule, Indian private sector are set
to compete with other wide-eyed companies from across the world for a
slice of the potentially promising pie of the country's largely untapped
natural resources.

While India may be looking at the huge
promise held out by opening up of Myanmar's economy, industrialists and
businessmen familiar with the country point to the difficulties in
getting returns for their investment in a place where the education and
skill levels are low, rules are weakly enforced and acute power shortage
is a chronic problem.

A 25-member delegation of Indian business
and industry honchos, coverig key sectors of the economy, are now here
coinciding with Prime Minister Manmohan Singh's visit and three Indian
companies have already secured contracts in oil exploration, solar
energy and gas pipeline projects.

India is Myanmar's fourth largest trading partner after China, Thailand and Singapore and 13th biggest investor.

Since
President Thein Sein doffed military uniform and took office as the
head of a nominally-civilian government in March last year, Myanmar's
movement out of the diplomatic cold has been rapid.

International
sanctions, especially by the US, European Union and other countries,
aimed at isolating the military junta are being eased as the Myanmar
government stretches the limit of freedom for political dissidents.

As
the sanctions ease, a rush of firms are looking to tap a potential 62
million people and a young workforce in an economy projected by the
International Monetary Fund to grow at 5.5 percent.

While the EU
and Japan has abolished almost all the sanctions, Japanese companies are
showing particularly strong interest. Japan announced last month
writing off of 3.7 billion dollars of Myanmar's debt and resume
suspended aid.

Some Japanese companies are also scouting for mining rare metals like tungsten and molybdenum.

Myanmar's
two other next door neighbours Thailand and China are ahead of the
pack, having done an estimated combined 9.4 billion dollars of business
with Myanmar in 2010. China has bought vast quantity of oil, gas and
timber from Myanmar.

Getting skilled employees, many of whom have
left the country, and curbs on private ownership by foreigners are two
major areas of concern, said Indian business delegation sources.

However,
Myanmar has taken a major step towards attracting foreign investment by
introducing last month a managed floating regime for its currency Kyat.

What
foreign investors are looking at in Myanmar is expediting the political
and economic reforms and enhance investment in infrastructure,
education and health sectors.